Bakrie oil arm acquires field in South Africa Oleh Dyah Megasari - Senin, 21 Oktober 2013 | 14:17 WIB | Sumber The Jakarta Post

JAKARTA. Jakarta listed PT Energi Mega Persada, arm of the widely diversified Bakrie group, sealed a deal to acquire an oil and gas block in South Africa.

Energi Mega announced on Friday that it had acquired a 75 participating interest in Buzi EPCC Block in Mozambique.

The company will be a new partner to the Mozambique government, which owns the remaining 25 percent stake through its Empressa Nacional de Hidrocarbonetos (ENH).

Energi Mega said the acquisition of the block, which is expected to start production in 2017, had been valued at US$175 million.

Energi Mega president director Imam Agustino said the Buzi block was a high value asset with measurable risk.

“A number of large multinational companies are actively exploring, appraising and developing their gas discoveries into LNG [Liquefied Natural Gas] projects in Mozambique. We are happy that our entry to Mozambique is in the early stages of gas development and our partner is the government,” Imam said in a written statement.

Energi Mega said it would finance the acquisition with internal cash and loan financing.

The company’s head of investor relations Herwin Hidayat said Energi Mega’s internal cash would finance almost 50 percent of the $175 million needed to acquire interest in the block.

He said that the Buzi block was a good prospect.

The Buzi block, one of many fields in Mozambique known for its gas reserves and resources, is reported to have 283 billion cubic feet of proven and probable gas reserves.

Moreover, the block also has 3.4 trillion cubic feet of gas prospective resources.

It is also surrounded by other producing gas fields, such as the Pande, Temana and Inhassoro oil fields.

Moreover, proper infrastructure of gas pipeline from Mozambique to South Africa will secure its distribution.

Demands are also in place, both export and domestic, including for Mozambique’s electric generation and petrochemical industry.

Article on "Pipelines pose fewer risks for workers and less spills compared to transporting oil by rail or truck"

CALGARY, AB—Oil transport by pipeline presents significantly lower safety risks to workers than oil movement by road or rail, concludes a study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

The study, Inter-modal Safety in the Transport of Oil, determined that the rate of injury requiring hospitalization was 30 times lower among oil pipeline workers compared to rail workers involved in the transport of oil, based on extensive data collected in the United States. Road transport fared even worse, with an injury rate 37 times higher than pipelines based on reports to the U.S. Department of Transportation for the period 2005-2009.

Announcement Offshore Energy exhibition & conference 2014

Offshore Energy  Exhibition and Conference 2014 will be held on 28 & 29 October 2014 at the Amsterdam RAI, the Netherlands. 2014 brings the 7^th edition of Offshore Energy.

Offshore Energy is the fastest growing gathering of offshore industry professionals. Founded in 2008 with 70 exhibitors and 1,765 visitors, Offshore Energy has been breaking records year after year. The 6^th edition of Offshore Energy on 15 & 16 October 2013 brings together some 500 exhibitors and over 8,500 visitors representing 50 nationalities.

The organization expects that the event will continue on its path of steady growth. Offshore Energy 2014 will host between 500 and 600 exhibitors and is expected to attract over 10,000 professionals from all over the world. Both the exhibition and the extensive conference program of Offshore Energy 2014 will address the technical, operational and commercial challenges associated with industry growth.

The 2014 technical program will once again feature an international faculty of speakers covering a broad palette of topics. Meetings range from high caliber panels and technical sessions to annual meetings of industry organizations and masterclasses, catering to professionals from board level to operational level and young talents.

Largest oil fields in the World

It comes as no surprise that the top three largest offshore oil fields in the world are located in the Persian Gulf - two of them operated by Saudi Arabia and one by UAE. Brazil's Santos Basin and the Caspian Sea contain the other two giant oil fields. Sources profiles the largest offshore fields by estimated recoverable reserves.

Reliance Industries signs a joint study agreement with Petroleos De Venezuela, SA (PdVSA)

Reliance Industries Limited (RIL) and the Venezuelan state oil company, Petroleos de Venezuela, SA (PdVSA) have signed a Joint Study Agreement for Ayacucho Block 8 in Orinoco Oil Belt.

As per the study agreement, both the parties will jointly evaluate the development plan for Ayacucho 8.

RIL and PdVSA have also extended the term of the MOU signed between the parties last year by one year for continued cooperation.

The signing of the Joint Study Agreement for Ayacucho Block 8 and the extension of MOU marks further strengthening of the long standing relationship between RIL and PdVSA as well as between India and Venezuela.

About RIL

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 371,119 crore (US$ 68.4 billion), cash profit of INR 30,505 crore (US$ 5.6 billion) and net profit of INR 21,003 crore (US$ 3.9 billion) as of March 31, 2013.

A New Approach to Facing Rod Pump Challenges

Worldwide, there are approximately 2 million oil wells and 37.5 percent of these use rod pumps as the artificial lift method. Alternative methods such as electrical submersible pumps, gas lift systems, and progressive cavity pumps are used on 12.5 percent of the wells.

Rod pumps face many operational challenges. Some of these challenges consist of:

• Mechanical wear
• Corrosion
• Pump failures
• Inefficient pumping

The most common challenges are mechanical wear and corrosion, both of which lead to a constant battle to decrease failures and workover costs, especially as a field matures and water production increases. Corrosion and wear management are an essential part of optimizing operations. There is extensive information available in literature about traditional mechanical wear and corrosion mitigation methods. Below are some examples of the most common mitigation methods:

• Use rod guides to prevent rods and rod couplings from contacting tubing
• Install rod rotators to distribute the wear equally
• Utilize pump-off controllers so the well is not pumped off, and only actively pumped when sufficient fluid is available
• Use corrosion inhibitors to oil-wet the tubing and rods in high water cut wells to provide lubrication

A new type of rod pump, the Linear Lift System (LLS), was recently developed. The LLS aids in directly addressing inefficient pumping and mechanical wear and indirectly addresses pump failure challenges; the LLS will be the focus of this blog.

Fig-1 Traditional Rod Pump

Top stories from Offshore World for the month of September

1. BP requests US court to stop spill settlement payments
2. GE Oil & Gas unveils subsea manifold design for offshore customers
3. FMC secures $90m subsea equipment contract from Statoil
4. Chevron to pay $42m to settle Brazilian spill suits
5. Total warns Shell of corrosive drilling fluid leak at Shearwater
6. Buccaneer Energy to acquire Apache leases in Alaska

And many more have a look at Offshore World Top stories for the month of September...

http://www.offshore-technology.com/features/feature-september-stories-bp-us-court-settlement-chevron-frade-field/

GE to provide close to $600 million in turbomachinery equipment for Russia’s Yamal LNG megaproject

GE (NYSE:GE) has received a contract to provide key turbomachinery equipment for the Yamal liquefied natural gas (LNG) “megaproject” that is being developed on the Yamal Peninsula in Russia’s northern Siberia region. The LNG produced at the site will be used to help meet the growing energy needs, primarily of Asia and Pacific Region countries.

“GE is supporting some of the world’s largest LNG projects, and the Yamal LNG megaproject is an exciting example of how our deep expertise in integrated LNG technology and life cycle services is helping the Russian/CIS region secure its energy future”

The LNG megaproject is owned by JSC Yamal LNG, a joint venture between Russia’s largest independent gas producer OAO Novatek (80 percent) and France’s Total SA (20 percent). The project is being implemented in the Arctic zone of Russia, in the Yamal Peninsula, near Sabetta port. The joint venture is building a gas liquefaction facility that will have a production capacity of 16.5 million tons per year, based on the feedstock resources of the South Tambeyskoye gas condensate field. Proved and probable reserves of natural gas (PRMS) of the South Tambeyskoye field exceed 900 BCM (32 tcf).